Conflicts of interest and how you're paid
What you'll be able to do
How you're paid can bias what you sell — name conflicts, disclose what you can't avoid, and resolve them for the client.
- Compensation is the central conflict — commissions, trailers, incentives, targets.
- Identify material conflicts and address them in the client's best interest.
- Disclose conflicts you can't avoid; avoid those you can't manage in the client's favour.
How a seller is paid shapes — consciously or not — what they recommend, which is why compensation is the central conflict of interest in this business. Commissions, trailing fees, sales incentives, proprietary-product targets, and bonuses can all pull against the client's interest. The rules don't pretend conflicts vanish; they require you to identify material conflicts and address them in the client's best interest, disclosing those you can't avoid.
The honest posture is transparency, not denial. A client who understands how you're compensated can weigh your advice appropriately, and a conflict that's been disclosed and managed is far less dangerous than one that's hidden. Where a conflict can't be resolved in the client's favour, the rules increasingly require avoiding it — not just disclosing it.
Watch for the subtle ones: a sales contest that nudges you toward one product family, or a proprietary fund that's 'fine' but not the best fit. Naming these to yourself is the discipline that keeps recommendations clean.
Key points
- Compensation is the central conflict — commissions, trailers, incentives, targets.
- Identify material conflicts and address them in the client's best interest.
- Disclose conflicts you can't avoid; avoid those you can't manage in the client's favour.
- Watch subtle conflicts: sales contests, proprietary-product pressure.
Examples
A quarterly contest rewards selling Fund A. If Fund B fits the client better, the contest is a conflict you must recognize and set aside — the client's interest decides, not the prize.
Pitfalls
- Pretending compensation doesn't influence recommendations.
- Disclosing a conflict and then proceeding as if disclosure alone resolved it.
Ask your sales coach
In a real Adept rollout this routes to your firm's compliance-approved Claude project; in the demo it opens a fresh Claude chat. Never share real client details.